**Executive Summary**
The Reserve Bank of India issues Amendment Directions, 2026, modifying disclosure requirements for Regional Rural Banks (RRBs) regarding financial statements. Specifically, these directions introduce a new sub-paragraph related to exposures to related parties. The amendment comes into force on April 1, 2026, but banks can implement it earlier.
**Key Points / Main Content**
* **Amendment Overview:**
* Modifies the existing 'Disclosure in Financial Statements - Notes to Accounts' for RRBs.
* Inserts a new sub-paragraph (ix) under paragraph 10(5) on ‘Exposures’ related to parties.
* **Disclosure Requirements for Exposures to Related Parties:**
* RRBs must disclose details of exposures to related parties as defined in the Reserve Bank of India (Regional Rural Banks – Credit Risk Management) Directions, 2025.
* Disclosure to be made as per the provided table:
* **Loans to Related Parties:**
* Aggregate value of loans sanctioned during the year.
* Aggregate value of outstanding loans as on March 31st.
* Aggregate value of outstanding loans as a proportion of total credit exposure as on March 31st.
* Aggregate value of outstanding loans categorized as:
* Special Mention Accounts as on March 31st.
* Non-Performing Assets as on March 31st.
* Amount of provisions held in respect of loans as on March 31st.
* **Contracts and Arrangements involving Related Parties:**
* Aggregate value of contracts and arrangements awarded during the year.
* Aggregate value of outstanding contracts and arrangements as on March 31st.
* **Effective Date:**
* Amendments come into force from April 1, 2026.
* Banks may choose to implement amendments earlier.
**Impact Analysis**
**Regional Rural Banks (RRBs)**
* **Impact:** RRBs need to enhance their financial reporting processes to comply with the new disclosure requirements.
* **Action Required:** Modify financial statement reporting to include the new sub-paragraph on exposures to related parties and ensure accurate data collection for the specified disclosures.
**Reserve Bank of India (RBI)**
* **Impact:** Will receive more detailed and transparent information on RRB exposures to related parties, aiding in monitoring and risk assessment.
* **Action Required:** Monitor RRB compliance with the new disclosure requirements.
Key Entities Referenced
Reserve Bank of India: The central bank of India, issuing the amendment directions.
Reserve Bank of India (Regional Rural Banks – Financial Statements: Presentation and Disclosures) Directions, 2025: The original directions being amended by this document.
Reserve Bank of India (Regional Rural Banks – Credit Risk Management) Amendment Directions, 2026: Directions that led to the amendment regarding financial statement disclosures.
Banking Regulation Act, 1949: Act providing the legal basis for the Reserve Bank of India's authority.
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
RBI/2025-26/184
DOR.CRE.REC.384/21-04-018/2025-26 January 05, 2026
Reserve Bank of India (Regional Rural Banks – Financial Statements:
Presentation and Disclosures) – Amendment Directions, 2026
Please refer to Reserve Bank of India (Regional Rural Banks - Financial Statements:
Presentation and Disclosures) Directions, 2025 (hereinafter referred to as ‘the
Directions’).
2. On a review, consequent to the issuance of the Reserve Bank of India (Regional
Rural Banks – Credit Risk Management) – Amendment Directions, 2026, and in
exercise of the powers conferred by the sections 21 and 35A of the Banking Regulation
Act, 1949 and all other provisions / laws enabling the Reserve Bank of India
(hereinafter called the Reserve Bank) in this regard, the Reserve Bank being satisfied
that it is necessary and expedient in the public interest so to do, hereby issues the
Amendment Directions hereinafter specified.
3. The Amendment Directions modifies the Directions as under:
(1) In Chapter-III ‘Disclosure in Financial Statements – Notes to Accounts’, a new sub-
sub paragraph (ix) shall be inserted under sub-paragraph 10(5) on ‘Exposures’, as
given below:
10(5)(ix) Exposures to Related Parties
Details of exposures to related parties as defined in Reserve Bank of India
(Regional Rural Banks – Credit Risk Management) Directions, 2025 shall be
disclosed as per the following table:
(Amount in ₹ crore)
Sl Particulars Previous Current
No.
Year Year
A. Loans to Related PartiesReserve Bank of India (Regional Rural Banks – Credit Risk Management) – Amendment Directions, 2025
1 Aggregate value of loans sanctioned to related
parties during the year
2 Aggregate value of outstanding loans to related
parties as on 31st March
3 Aggregate value of outstanding loans to related
parties as a proportion of total credit exposure as
on 31st March
4 Aggregate value of outstanding loans to related
parties which are categorized as:
(i) Special Mention Accounts as on 31st March
(ii) Non-Performing Assets as on 31st March
5 Amount of provisions held in respect of loans to
related parties as on 31st March
B. Contracts and Arrangements involving Related Parties
6 Aggregate value of contracts and arrangements
awarded to related parties during the year
7 Aggregate value of outstanding contracts and
arrangements involving related parties as on 31st
March
4. The above amendments shall come into force from April 1, 2026. Banks may
however decide to implement the amendments in entirety from an earlier date.
Vaibhav Chaturvedi
(Chief General Manager)
2